Rothschild: history of a London banking dynasty

The Rothschild banking dynasty has been in London for 200 years, in which time
its eponymous bank, NM Rothschild, has been at the heart of Britain’s
economic life.

Photo: CORBIS

By Harry Wilson

6:15AM GMT 04 Feb 2011

Established in London in 1811 by Nathan Mayer Rothschild, one of the famous five sons dispatched by their father to Europe’s financial capitals to expand the family's banking business, NM Rothschild made its initial fortune in government bonds.

During the Napoleonic Wars, Rothschild helped the British government sends funds to its allies, while an elaborate network of agents and couriers meant the bank also became responsible for providing money to the Duke of Wellington’s army in Portugal and Spain.

The Rothschild financial power and nouse meant that in 1825 they were able to supply enough coinage to the Bank of England to prevent a financial crisis.

The bank also provided the £15m gilt issue that was needed to pass the Slavery Abolition Act in 1833.

Throughout the rest of the 19th century, NM Rothschild established its pre-eminence, helping Britain buy a controlling stake in the Suez Canal, funding Cecil Rhodes’ British South Africa Company, and buying up large holdings in future giants such as mining company Rio Tinto and diamond miner De Beers.